The Effect of Inflation and Corporate Social Responsibility on Share Returns with Profitability as Intervening Variables in the Mining Sector: 2017-2019 Period
Journal Title: International Journal of Applied Research in Management and Economics - Year 2021, Vol 4, Issue 1
Abstract
This study aims to prove the effect of inflation and corporate social responsibility on stock returns with profitability as an intervening variable in mining listed on the Indonesia Stock Exchange. The population of this study is 47 mining sector companies listed on the Indonesia Stock Exchange (BEI). The sampling technique uses a purposive sampling method which has certain criteria in taking samples that have an annual financial report 2017-2019, in order to obtain 22 companies. mining sector is listed on the Indonesia Stock Exchange (IDX). The method of this research uses analysis of Structural Equation Modeling (SEM) based on variance, namely Partial Least Square (PLS). SEM with variance-based PLS so that it can handle two conditions, namely conditions with undetermined factors and conditions where the solution cannot be accepted. This study uses a computer program from smart PLS 3.2 which is to determine which variables are significant to stock returns in mining listed on the Indonesia Stock Exchange for the 2017-2019 period. The results of this research show that: (1) inflation has a significant effect to stock returns; (2) inflation has a significant impact on profitability; (3) corporate social responsibility has a major impact on stock returns; (4) corporate social responsibility has a significant impact on profitability; (5) profitability has a significant impact on stock returns.
Authors and Affiliations
Verry Allan Dwi Prastyo,Slamet Riyadi,Sunu Priyawan,
Keywords
Related Articles
- EP ID EP745312
- DOI https://doi.org/10.33422/ijarme.v4i1.472
- Views 43
- Downloads 0
The Imperatives of Financial Instruments to Addressing the Working Capital Challenges of Businesses in the Global Value Chains Trades: The New World Trading Currency
The study was carried out to examine the level of awareness on financial instruments and familiarization with any other financial instruments apart from the Letter of Credit (L/C) and Bank Guarantee (BG). Furthermore, it...
Luxury in a Post-Growth Society – Success or Disparity?
This study examines, based upon four guiding research questions, how change towards a post-growth society can take place and what consequences this will have for society, i.e. as well the individual consumer, but especia...
Supplier integration
In the supplier evaluation process, companies focus on comparing performances. The literature offers various analysis methods, although the matrices used are often subjective and difficult to implement in practice. This...
A Language for Dealing with Emotions in Product Innovation: A Proposal
The knowledge of emotions is essential in a wide spectrum of designs created for the customer (e.g. product design, service design, graphic design, food design). The complexity of designing a product-service system to pr...
Unlocking Temporal Leadership to Handle Project Team Performance under Team Conflict
It is discussed in different studies that the performance of any team is directly or indirectly dependent on the leadership of that team. But there are always some circumstances which affect the performance of a team on...